Chapter 9: Information Systems and Supply Chain Management

A collection of key terms and definitions related to Information Systems and Supply Chain Management from Chapter 9.

Supply Chain Management

A set of activities and techniques firms employ to efficiently and effectively manage the flow of merchandise from vendors to the retailer’s customers.

Strategic Advantage

The unique and sustainable advantage that enables retailers to realize a higher-than-average return on their assets.

Efficient Supply Chain Management

Can lead to strategic advantage, improved product availability, higher return on assets.

Vendor-Managed Inventory (VMI)

An approach for improving supply chain efficiency where the vendor maintains the retailer's inventory levels.

Collaborative Planning, Forecasting, and Replenishment (CPFR)

The sharing of forecasts and related business information between retailers and vendors to improve supply chain efficiency.

Electronic Data Interchange (EDI)

The computer-to-computer exchange of business documents between retailer and vendor.

Quick Response Delivery System (QR)

An inventory management system designed to reduce the retailer’s lead time for receiving merchandise.

Universal Product Code (UPC)

A black and white bar code containing a 13-digit code of information used for product identification.

Bullwhip Effect

The buildup of inventory in an uncoordinated channel, leading to delays and ordering in batches.

Drop-Shipping

A supply chain system where retailers relay customer orders to a vendor, who then ships directly to the customer.

Category Captain

A supplier that forms an alliance with a retailer to help gain consumer insight and improve performance across the category.

Logistics

The process of managing the flow of goods from the vendor to the customer.